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Facts
The assessment was framed ex-parte under Section 143 read with Section 144(B) of the Income Tax Act, 1961. During the first appellate proceedings, the assessee failed to appear despite notices, leading the CIT(A) to dismiss the appeal ex-parte for non-prosecution without addressing the merits of the case.
Held
The ITAT held that the CIT(A) ought to have decided the appeal on its merits. Therefore, the ITAT restored the appeal to the file of the CIT(A) with a direction to decide the matter on merits after providing the assessee a proper opportunity of being heard, also directing the assessee to cooperate.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte for non-prosecution without deciding it on merits, or if it should be restored for a decision on merits.
Sections Cited
Section 143, Section 144(B), Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI
Before: BEFORE SHRI YOGESH KUMAR U.S. & SHRI AVDHESH KUMAR MISHRA
This appeal is filed by the Assessee against the order of Ld.
CIT(A/ National Faceless Appeal Centre[“NFAC”, for short], dated 16/06/2024 for the Assessment Year 2018-19.
During the course of hearing nobody was present on behalf of the Assessee, neither any adjournment was sought. The notice sent by the registry has been returned with an endorsement the ‘addressee not found’. deem it fit to decide the Appeal on hearing the Ld. DR and after perusing the material on record.
We have heard the Ld. DR and perused the material on record.
It is seen from the record that the assessment has been framed ex-parte u/s 143 read with Section 144(B) of the Income Tax Act, 1961 (‘Act’ for short). During the first appellate proceedings before the Ld. CIT(A), the Assessee failed to appear even after issuance of three notices by the Ld. CIT(A). The Ld. CIT(A) dismissed the Appeal filed by the Assessee ex-parte.
However, the Ld. CIT(A) has not decided the Appeal on its merit on the other hand, the Appeal of the Assessee has been dismissed for non-prosecution. The Ld. CIT(A) ought to have decided the issue involved in the Appeal on its merit. Thus, we restore the Appeal to the file of the Ld. CIT(A) with a direction to decide the Appeal on its merit in accordance with law after providing the opportunity of being heard to the Assessee. The Assessee is also directed to cooperate with the proceedings before the Ld. CIT(A).
In the result, the Appeal of the Assessee is partly allowed for statistical purpose.